dividend investment Creating a steady flow of passive income can be one of the simplest ways to build long-term wealth. But in my opinion, a good dividend stock is about much more than just a high yield. In addition to dividend yield, investors should also look for companies with sustainable businesses, reliable cash flow, and a history of consistently rewarding shareholders over time.
This is why many investors turn to financial stocks. Banks and asset managers often generate recurring income through lending, investing and wealth management activities, allowing them to support stable dividend payments even during uncertain market conditions.
The two Canadian financial stocks that stand out right now are AGF Management (TSX:AGF.B) And Toronto-Dominion Bank (TSX:TD). Both companies offer attractive dividends supported by solid financial performance and long-term growth strategies. In this article, I’ll explain why these two financial stocks may be worth considering for income-focused investors right now.
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AGF management continues to reward stock shareholders
AGF Management is a Toronto-based asset manager that does business in investments, private markets and wealth management. Through these divisions, the company offers equity, fixed income, alternative and multi-asset investment strategies to retail, institutional and private wealth clients.
After surging 59% over the last 12 months, AGF stock is currently trading at $16.67 per share. market cap Of approximately $1.1 billion. At current levels, the stock offers a quarterly dividend yield of 3.3%.
One reason behind AGF’s recent strong performance is its increasingly diversified business model. The company has expanded its investment capabilities and expanded its geographic reach, which has helped it perform well in different market environments.
In the first quarter of its fiscal 2026 (ending February), AGF posted free cash flow of $36 million, up 14% year over year, primarily driven by higher management, advisory and administration fees. This fee increased to $92.5 million due to strong demand for the company’s investment offerings.
AGF is also focusing on expanding its alternative investment business and introducing new investment products. With strong cash generation and growing demand for alternative investments, AGF management is well positioned to continue rewarding investors over the long term.
TD Bank stock remains a reliable dividend stalwart
Toronto-Dominion Bank, or TD Bank, is one of the largest banks in North America, serving millions of customers through its Canadian banking, U.S. retail banking, wealth management and insurance, and wholesale banking operations.
After jumping 70% over the past year, TD stock currently trades at $148.14 per share and has a massive market capitalization of $247 billion. It also continues to offer investors a quarterly dividend yield of 3%.
TD’s latest results show why it remains a dependable dividend stock. Bank’s in February 2026 quarter informed Net income rose 45% year over year to $4 billion, while adjusted earnings rose 16% to a record $4.2 billion.
Similarly, the bank’s Canadian personal and commercial banking segment delivered record revenues and earnings on the back of higher loan and deposit volumes. Meanwhile, its wealth management and insurance businesses also posted record earnings, while wholesale banking benefited from strong trading and fee income growth.
Notably, TD ended the quarter with a strong common equity Tier 1 capital ratio of 14.5%, giving it a solid capital cushion. While the bank continues to spend on US anti-money-laundering prevention and control reforms, its strong income base, large customer network and diversified operations continue to support its dividend.